I want to move background image and not this red circle thing
You can't drag a background image. To move it use the numbers in the background image section of the properties bar (You can bring this up by pressing N in the 3D viewport).





Zooming has nothing to do with panning. To pan around the 3D viewport use Shift + MMB.
The little red circle thing is the 3D cursor. It is for doing operations relitive to a point in space.


As a word of advice, I highly suggest you watch some tutorials on the 3D view and interface before worrying about things like background images.